Financial sector dominates weekly market activities with N21.8 billion
The financial services industry dominated in volume terms at the end of last week’s transactions on the equities sector of Nigeria’s capital market.
It led the activity chart with 2.1 billion shares valued at N21.8 billion traded in 14,008 deals, thus contributing 69.2 per cent to the total equity turnover.
Following the banking sector was the conglomerate industry, accounting for 398.6 million shares worth N1.2 billion in 3,129 deals.
The services industry ranked third with a turnover of 270.1 million shares worth N1.9 billion in 1,317 deals.
Trading in the top three equities, namely Fidelity Bank Plc, Access Holdings Plc and Transnational Corporation Plc (measured by volume) accounted for 1.3 billion shares worth N8.2 billion in 5,286 deals, contributing 43.8 per cent to the total equity turnover.
However, a total turnover of three billion shares worth N33.6 billion was recorded in 29,505 deals by investors on the floor of the exchange, lower than a total of 3.6 billion units, valued at N36.4 billion that changed hands in 27,801 deals during the preceding week.
On the activity chart, losses recorded in the shares of top telecommunication player Airtel Africa (six per cent) dragged the all-share index and market capitalisation by 0.1 per cent to close the week at 52,187.93 and N28.417 trillion respectively.
All other indices finished higher except NGX Main Board, NGX 30, NGX Oil and Gas, NGX Lotus II, NGX Industrial Goods, and NGX Growth, which depreciated by 0.64 per cent, 0.09 per cent, 1.67 per cent, 0.66 per cent, 0.03 per cent and 0.32 per cent respectively, while the NGX ASeM and NGX Sovereign Bond indices closed flat.
Analysts attributed the downturn to weak macroeconomic indices and uncertainty in the global market.
Cordros Capital said: “Looking ahead, we believe investors will focus on the outcome of the MPC meeting scheduled to hold next week (this week) to gain further clarity on the movement of yields in the fixed-income market.
“As a result, we expect cautious trading from domestic investors in the short term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the uninspiring macro story remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said: “Sectoral performance was relatively bullish this week (asides from the telecoms and oil and gas sectors), as buy-interest in the banking sector was sustained.
“We expect a slow start next week as investors look to take profit on some recent gainers, as that has been the trend in the market lately.”
Afrinvest said: “We anticipate mild gains on the local bourse as investor hunt for bargains in relatively cheap and fundamentally sound stocks.”
A total of 2.9 million units of Exchange Traded Products (ETFs) valued at N55.7 million were traded in 44 deals compared to a total of 31,234 units valued at N2.9 million transacted last week, in 68 deals.
Also, 126,110 units of bonds valued at N130.9 million were traded in 18 deals compared with a total of 22,604 units valued at N21.8 million transacted, last week in 20 deals.
Forty-four equities appreciated lower than 48 equities in the previous week. Also, 27 equities depreciated lower than 30 in the previous week, while 85 equities remained unchanged, higher than 78 recorded in the previous week.